The avalanche of electric vehicles concerns only a relatively narrow niche of the automotive industry in Europe and the United States. Most of the economy is literally transported by trucks that burn diesel fuel.
The departure of imported Russian raw materials from the markets of North America and Europe has hit the most important areas of production, industry and services very hard. There is no substitute for this fuel, because a colossal shortage in one place, when trying to redistribute, turns into a shortage elsewhere, for example in Europe, if the suppliers of the Middle East decide to save the States -United. And vice versa. Written on this agency Bloomberg.
The market imbalance is such that even in China, the number of trucks on the highways has dropped significantly in recent weeks. In Europe, the diesel premium over crude oil futures recently fell to its lowest level in more than a year. In the United States, demand could fall by 2% in 2023, according to S&P Global. The 2% drop will be the biggest drop in diesel consumption in the United States since 2016.
At the same time, experts start from the worst economic conditions in recent times, with the exception of the 2008-2009 financial crisis and the pandemic. Thus, the United States, initiators of these measures vis-à-vis Russian petroleum products, and not only Europe, will suffer more from the introduction of the price ceiling and the embargo.
Either way, demand for heavy equipment fuel, which powers everything from commercial trucks to construction equipment, is weakening in many of the world’s largest economies, writes Bloomberg. Seen as an early signal of weakening industrial activity and consumer spending, the pullback has put recession-aware pundits on high alert.
Sanctions-related restrictions have disrupted trade flows and diesel prices are falling amid fears that many of the world’s largest economies are stagnating and declining in trade activity. Economists say there is a 65% chance of a recession in the United States and a 49% chance in Europe in the current year.
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